Summary:

This factsheet will include

different forms of business
ownership. There will be in depth
looks at how different forms of
ownerships work.

This information is to help young

people understand what type/s of
business ownership/s that they
would want to build

Sole Trading:

. A Sole Trader is a sole business owner, basically, a Sole Trader owns their own business.

. This means that they are in control of their own income and get 100% of the profit.

. However, this also has the factor of the business owner being fully liable for debt, expenses
etc and whatever happens to the business, the business owner will have their assets targeted
to pay off any debt. This is called Unlimited Liability.

. Examples of sole traders include Photographers and Company Owners.

Partnerships:
Investopedia.com

. A Partnership is an arrangement between two or more people who agree to manage

and operate a business together.
Private Limited Companies:
startuploans.co.uk

. A Private Limited Company is a limited company in its own right.

. They are structured differently and are more complex because of

factors such as; different tax and legal obligations.

. The biggest difference between sole traders and Limited companyies is

that a limited company has special status in the eyes of the law.

. A Private limited company does nott publicly trade theire shares and
are limited to a maximum of 50 shareholders.

. Examples of Private limited companies; Photographers; Hair Dressers,

lawyers; Dentists.
Public Limited Companies:
gocardless.com

. A Public Limited Company is basically the opposite of a

Private Limited Vompany.

. They are open to trade on the stock exchange, which

means that they can get much more shares then Private
limited companies.

. These companies are usually bigger corporations like

banks and well known services like Vodafone.

. These companies are actually called PLC’s only in this

country, but for example, in the United States they are
called Public Corporations.

.One BIG key factor about Limited Companies jn general

is that they exist as a separate entity from the owners
which offers protection to the company from liabilities
and debt.

. Another big thing about Public Limited Companies is

that they are required to make their financial reports
known to the public so any potential shareholders have
all the information they need before investing.
Not for Profit Organisations:
BBC.co.uk

. A Not for Profit Organisation does not earn any profits

for their owners. Instead, all of the earned is used in
pursuing the Organisation’s objectives as well as
keeping the place running. Any income earned is not
distributed to the employees, managers or other.

. One example of a Not for Profit Organisation is a

charity. These are businesses that aim to raise money
for good causes or who aim to help people, animals or
thr environment. These types of businesses are mainly
funded by donations and get some tax relief.

. Another type of not for Profit Organisation is a social

enterprise which aim to help society. Social enterprises
make money by selling products or services like
traditional For Profit businesses. But they use their profit
to help society.

. Examples of social enterprises include; The Eden

Project; The National Trust; The Big Issue.
Franchises: